My company is registered in Mumbai and I have leased a property in Sikkim. Am I required to deduct TDS on the lease amount as Sikkim residents are not liable to pay IT.
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TDS ON RENT
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Lease rentals paid to sikkim residents for property situated in Sikkim shall also be exempt u/s 10(26AAA). But you do not have power or privilege to determine whether the person is liable to pay tax or not. So you can ask the person to visit his Jurisdictional AO and obtain NIL deduction certificate for income to be received by him. This is the safest way for you.
I have formed my opinion on the basis of case law: DCIT, Gangtok, Sikkim v/s M/s Mount Distilleries Ltd.(ITAT Kolkata). Please refer the order/judgement of this case law in detail.
I have formed my opinion on the basis of case law: DCIT, Gangtok, Sikkim v/s M/s Mount Distilleries Ltd.(ITAT Kolkata). Please refer the order/judgement of this case law in detail.
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